J. Cruz established his own business called Cruz Self-Storage. The account headings are presented after the...

 

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J. Cruz established his own business called Cruz Self-Storage. The account headings are presented after the transactions. Transactions completed during the month: a. Deposited P 120,000 in a bank account in the name of the business. b. Bought office equipment on account from KTM Corporation, P31,000. c. Paid rent for the month, P24,00 d. Bought supplies for cash, P4, 500. e. Paid salaries, P9, 800. f. Received cash for storage services, P36, 000. Received and paid the utility bill, P2, 520. h. Paid XYZ Advertising for the advertising billboard, P4,280. (The bill was not previously recorded.) i. Paid for a one-year liability insurance policy, P8,350. j. Billed customers for storage services on account, P33,700 k. Received cash for storage services, P23,000 1. Paid salaries, P 9,900 m. Paid KTM Corporation PI 1,000 as part payment on the office equipment bought in transaction b. n. Cruz withdrew P12, 000 for personal use. Required: Record the transactions in columnar form, write plus and minus signs. Write the proof of totals at the bottom to show that both sides are equal. (Accounting Equation) J. Cruz established his own business called Cruz Self-Storage. The account headings are presented after the transactions. Transactions completed during the month: a. Deposited P 120,000 in a bank account in the name of the business. b. Bought office equipment on account from KTM Corporation, P31,000. c. Paid rent for the month, P24,00 d. Bought supplies for cash, P4, 500. e. Paid salaries, P9, 800. f. Received cash for storage services, P36, 000. Received and paid the utility bill, P2, 520. h. Paid XYZ Advertising for the advertising billboard, P4,280. (The bill was not previously recorded.) i. Paid for a one-year liability insurance policy, P8,350. j. Billed customers for storage services on account, P33,700 k. Received cash for storage services, P23,000 1. Paid salaries, P 9,900 m. Paid KTM Corporation PI 1,000 as part payment on the office equipment bought in transaction b. n. Cruz withdrew P12, 000 for personal use. Required: Record the transactions in columnar form, write plus and minus signs. Write the proof of totals at the bottom to show that both sides are equal. (Accounting Equation)

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The events can be recorded in accounting equation as follows ITEM ASSETS LIABILITIES OWNERS EQUITY ... View the full answer